Everything Income Tax

Section 80CCD of Income Tax – Deduction for National Pension Scheme Contribution

by Varun Advani | 25 June 2015
A National Pension Scheme (NPS) has become the talk of the town since the finance minister enhanced the deduction to individuals for contribution towards the above-mentioned scheme by Rs. 50,000.     So what is NPS-National Pension Scheme? The NPS is a retirement benefit scheme. An individual who is employed by the central Government (on or after January 1, 2004) will have to join NPS on compulsory basis. Any other employee (irrespective of date of joining employment) may become member of NPS, as it is optional. Even a self – employed person may join NPS.   For a salaried ... [More]

Everything Income Tax

Income from Other Sources Under Section 56(1)

by Varun Advani | 25 June 2015
Income from other sources – Section 56(1)   Income from other sources is the last and residual head of income. A source of income that does not specifically fall under any one of the other four heads of income (viz., “Salaries ”, income from house property ”, profits and gain of business or profession ’’, Capital gain ’’) is to be computed and brought to charge under section 56 under the head ’’Income from other source’’.   To put the aforesaid matter differently, the residuary heads of income can be invoked only... [More]

Everything Income Tax

Section 44AD of Income Tax Act

by Varun Advani | 11 June 2015
Computation of business income under section 44AD is applicable if the taxpayer is a resident individual, resident Hindu undivided family or a resident partnership firm (not being limited liability partnership). [More]

Everything Income Tax

Tax Audit Under Section 44AB

by Varun Advani | 11 June 2015
Who is liable to get their books of accounts audited u/s 44AB of the Income Tax Act 1961?    Following persons are required to get their books of accounts compulsory audited by a chartered account.   A person carrying on business If the total sales, turnover or gross receipt in business for the previous year relevant to the assessment year exceeds Rs.1 crore. A person carrying on profession If is gross receipt in profession for the previous year relevant to the assessment year exceeds Rs.25 lakh. A person covered under section 44AE 44BBor 44BBB If s... [More]

Everything Income Tax

Claiming Income Tax Deductions Under Section 37(1)

by Varun Advani | 11 June 2015
Running a business is tough, as one single handedly needs to exercise control and govern a number of elements involved, the most important being expenses. Controlling expenses for any small business owner/freelancers is always a nightmare, but one aspect that a freelancer can control are the tax benefits you get for incurring expenses that are related to one’s business. The most common expenses include conveyance, Internet expenses, telephone expenses, and business promotion expenses. Other expenses also include printing and stationary, electricity expenses, books and periodicals and other administrative expenses. So what are the conditions that one needs to fulfill to get a tax deduction for incurring such expenses? [More]

Everything Income Tax